Will balance transfer decrease my score?

Submitted by Anonymous (not verified) on Thu, 07/02/2009 - 05:51

I have several cards, but I have managed to remain current with payments. My score is 740. I would like to consolidate all cards into one so that I have single payment. I have read about balance transfer in the forum. I understand that after transferring balance I will have to close all cards except one. In that case I will lose the credit history as well. How will it affect my score?

Hi Linda,

If you are transferring the balance of all your cards to a existing card, your credit score will not be affected. While you are transferring your balance, you should make the minimum payments for all your cards. After the balance is transferred, the credit card company will notify you regarding the same. You should check your credit report to see if the cards are reported as having $0 balance.

In case you are applying for a new card (having 0% interest rate) into which you want to transfer the balance of all other cards, it will slightly lower your credit score. But once you have paid off all your outstanding balance, your credit score will once again go up.

Thu, 07/02/2009 - 09:45 Permalink